Apax Partners’ acquisition of Finastra’s treasury and capital markets business (TCM) is set to be financed through an underwritten broadly syndicated term loan of roughly $1.2 billion, according to market sources.
Apax this week said the parties have entered into an agreement under which Finastra intends to sell its TCM business unit to an affiliate of Apax. Once completed, TCM will be rebranded and operate as a standalone business, the statement added.
Finastra said the sale of TCM will streamline the company’s portfolio and generate capital for reinvestment. This comes as Vista Equity Partners had been exploring a refinancing of the wider Finastra group, according to a Bloomberg report. The loan dates from a $4.8 billion unitranche facility provided back in 2023 to support a refinancing of the company’s debt due 2024.
TCM, with its client base of over 340 financial institutions, is an enabler of risk management, regulatory compliance, and capital markets operations. Evercore served as lead financial advisor to Finastra.
Finastra was formed via the June 2017 merger of Misys and D+H Corp.
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